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Tds deduction & entry of service provider

11 December 2012

How should be book Invoice of Service Provider..?????

Which Accounting Voucher should be used for entering entry of Invoice of Service Provider....???

When should be TDS deducted ---- @ the time of entring invoice in accounting softwre or @ the time of making Payment to Service Provider....?????

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8 Replies

Tejas Jain (Chartered Accountant) (314 Points)
Replied 11 December 2012

1) Journal Voucher

2) It should be deducted at the time of Making the entry.

Devendra (Chartered Accountant) (4775 Points)
Replied 11 December 2012

1) Journal Voucher entry should be selected. And following is the Journal Entry to record the Service Provider's Invoice in the Books of Accouts :-

Expense A/c Dr.

To Service Provider A/c

To Service Tax Input A/c

2)TDS on payment should be deducted on Credit or Payment whichever is earlier.

Regards,

Devendra Kulkarni

Gaurang Dandiwala (Accountant) (51 Points)
Replied 11 December 2012

Journal Voucher shoould be used for making entry..

& also deduct the TDS @ the time of entering JV itself or making payment whichever is earlier @ the prescribed rate

Sachin Rajput (account exe) (593 Points)
Replied 12 December 2012

If i m not wrong thn entry should be-

Expense A/c Dr.

Service Tax Input A/c Dr.

To Service Provider A/c
To TDS A/c

make me correct if i m wrong.......

Thanks

2 Like

Rajesh S Karkar (M.Com) (62 Points)
Replied 12 December 2012

Originally posted by : Gaurang Dandiwala
	Journal Voucher shoould be used for making entry.. & also deduct the TDS @ the time of entering JV itself or making payment whichever is earlier @ the prescribed rate

Thanks for yours' valuable replies......!!!

Sonu Kumar (Account Manager) (665 Points)
Replied 25 December 2012

I Think Entry Will be Passed as Follow....

Expenses A/c Dr- (Under Group Direct Expenses)

To Service Provider A/c - (Under Group Creditor)

To TDS A/c - (Under Statutary Libility)

( Being entry Passed Twds Services Provided by Service Provider, Vide Invoice No-.... Dt- )

Tds Will be Deducted on Payment or Bill Which Ever is earlier

Journal Entry Will be Passed for Service Tax Input Credite -

Service Tax Payble A/c Dr- (Statutary Liablity)

To Expenses A/c - (Direct Expenses)

(Being Service Tax Input credit on Service Bill of M/s........... Invoice No....... Dt- )

mukesh kumar (icwa final) (57 Points)
Replied 02 May 2014

a tour operator charged membership fee for 10 years and service tax is included in it.so what will be the journal enteries for the first and second year.service for the rest 9 years are yet to be provided.membership fee charged 1000000 for ten years and service tax charged at the rate of 12.36%